Electricity in the World and India India has the fifth largest generation capacity in the world. The top four countries, viz., US, Japan, China and Russia together consume about 49 per cent of the total power generated globally. The average per capita consumption of electricity in India is estimated to be 704 kWh during , compared to the US (~15,000 kWh) and China (~1,800 kWh). The world average stands at 2,300 kWh.

Indian Electric Power Survey The Central Electrical Authority’s 17th Electric Power Survey was released in May, The Electric Power Survey Committee conducts periodic surveys of electricity demand and holds discussions with all the stakeholders to bring out demand forecast for use in planning exercises of all key sectors of economy i.e. coal, rail, manufacturing, infrastructure, research, industries, etc.

17 th Electric Power Survey YearAnnual Peak Electrical Load at Power Station Bus Bars (MW)

Power for All by 2012 The Ministry of Power has set a goal - Mission 2012: Power for All. A comprehensive Blueprint for Power Sector development has been prepared encompassing an integrated strategy for the sector development with following objectives:- - Sufficient power to achieve GDP growth rate of 8% - Reliability of power - Quality power - Optimum power cost - Commercial viability of power industry - Power for all

Power for All by 2012 (as on ) Power Sector at a Glance "ALL INDIA" SectorMW% share State Sector82, Central Sector52, Private Sector36, Total1,71,

RGGVY The Rajiv Gandhi Grameen Vidyuthikaran Yojana (RGGVY), aimed at rural electrification, is an initiative to provide focus and funds to rural distribution. As of 31 st March 2011, a total of 587 projects were sanctioned, at a cost of Rs. 26,349 crores, electrifying 1,18,499 un/de-electrified villages.

Coal – The World Coal currently fuels 40% of the world electricity and this proportion is set to remain static over the next 30 years. About 70% of the world's steel production is based on coal.

Indian Fuel Mix (as on ) FuelMW% share Total Thermal Coal Gas Oil Hydro (Renewable) Nuclear Renewable Energy TOTAL

Coal Reserves in India (as on in billion tonnes) Type of coalProvedIndicatedInferredTotal All India : Total Prime-coking Medium-coking Semi-coking Non-coking High sulphur Lignite

Depth-wise Coal Reserves (as on )

Extractable Coal Reserves 1 The coal that can be extracted—taking into account geological, technical, and economic aspects - is only a small fraction of our total coal inventories, without taking into account the “no- go” areas. The extremely high figure of billion tonnes has created a false and risky notion that India is quite comfortably placed with over 100 years of domestic coal supply at its disposal.

Criticism of Indian system of reporting ( Indian Standard Procedure 1957) Based on categories defined by concentration of exploratory boreholes. Purely geological resource accounting system. Does not consider mineability /extractability/ economic criteria. Thus highly exaggerated resource inventory.

Coal Reserve Data Criticism Gross, cumulative and does not consider depletion/ sterilization; includes coal  That was extracted during past 230 years of mining.  That was burnt / is burning in Jharia / Dhanbad and elsewhere.  That would be almost impossible to mine In partially developed thick seams, in mine barriers, and in inundated mines. Under reserve forests, tiger reserves, townships, rivers, major railways etc. In seams between m depths and deeper.

Extractable Coal Reserves 2

Extractable Coal Reserves 3

Sector-wise Coal Production The provisional total production of coal in was around million tonnes which was higher by 7.8% as compared to the previous year. Coal mining was confined mainly to the public sector contributing 92.4% in both the years i.e and In , out of the total production of coal, 7.5% was coking coal and the rest 92.5% was non-coking coal.

Coal – Power Sector In India, about 77% of the total coal output is consumed in the power sector.

Coal – Indian States 1 Chhattisgarh is the largest coal producing state with a share of about 20.7%, followed closely by Orissa and Jharkhand having contribution of 20.0% and 19.5%.

Coal – Indian States 2 Next in order of share in the total production were, Madhya Pradesh (14.5%), Andhra Pradesh (9.0%), Maharashtra (7.9%), West Bengal (4.6%) and Uttar Pradesh (2.4%). The remaining 1.40% of coal production accrued from the states of Assam, Jammu & Kashmir and Meghalaya.

Coal Mining Profile 1 In , share of production of raw coal from opencast (OC) mines was 88% against 12% from underground (UG) mines.

Coal Mining Profile 2 Opencast mines damage a large land surface area, displace people from their ancestral homesteads and cause agricultural losses. But the method is cost effective, recovery is high, comparatively better in safety aspects and is considered to be a modern method. Surface mining requires large areas of land to be temporarily disturbed.

Coal Mining Profile 3 As on , there were 561 operating mines for coal in the country, out of which 197 were opencast while 332 were underground mines. The remaining 32 were mixed collieries. There were 537 public sector mines and 24 mines in private sector.

Mining-Induced Displacement and Resettlement 1 Mining-induced Displacement and Resettlement (MIDR) poses major risks to societal sustainability. MIDR leads to landlessness, joblessness, homelessness, risk of marginalization, change in population dynamics, higher cost of living, more health risks, disruption of formal educational activities and increased addictions.

Mining-Induced Displacement and Resettlement 2 MIDR is accompanied by the resettlement effect, defined as the loss of physical and non- physical assets, including homes, communities, productive land, income-earning assets and sources, subsistence, resources, cultural sites, social structures, networks and ties, cultural identity and mutual help mechanisms.

Mining-Induced Displacement and Resettlement 3 Displacement—Key Social Issue. Displacement of people due to coal mining is inevitable and is of enormous magnitude 1,70,000 families or 8,50,000 displacees to be rehabilitated by – Land requirement to double from current 1,47,000 ha to 2,92,500 hectares.

Mining-Induced Displacement and Resettlement 4 – Very limited data and socio-economic information on PAPs. – Fernandes: about 5 million (DPs and PAPs) for all mining (mostly coal) (disputed). – 75% of displaced people’s lives worsened due to displacement. – Detailed socio-economic data needs to be monitored, collected, and authenticated on a routine basis for all projects.

Mining-Induced Displacement and Resettlement 5 – Coal projects are being held up because of social protests against mining. – Little/no information on abandoned mines; reclamation and mine closure problems. – Rehabilitation and Resettlement (R&R) should make sure that people are better off than before. R&R should include creation of social assets and benefit sharing. – Need for coal companies to be progressive and pro-active in dealing with their past.

Mining-Induced Displacement and Resettlement 6 PAPs need to be part of the decision making process.

Coal Mine Profile 1 There were 559 coal mines (as on ) which reported production in Out of these, 174 mines were located in Jharkhand, West Bengal had 102 mines, Madhya Pradesh (74), Chhattisgarh (57), Maharashtra (53), Andhra Pradesh (52) and Orissa (27). The remaining 20 mines were located in the states of Assam, Jammu & Kashmir and Uttar Pradesh.

Coal Mine Profile 2 In , there were 76 large mines each producing some 10 lakh tonnes of coal during the year and these mines accounted for 74.3% of the total production. About 25.2 % of the total coal production was shared by 380 mines whose individual production varied between 50,000 to 10 lakh tonnes. Only 0.5 % of the production was contributed by 103 small mines each producing up to 50,000 tonnes.

State PSUs in Coal Mining Bihar State Mineral Development Corporation Ltd (BSMDC), Damodar Valley Corporation (DVC) and Jammu & Kashmir Minerals Ltd. (JKML) are the State Government undertakings engaged in coal mining.

Lignite Mining Of the thirteen working mines, all of them opencast, three are owned by Neyveli Lignite Corporation (NLC), five by Gujarat Mineral Development Corporation Ltd. (GMDCL) and three by Rajasthan State Mines and Minerals Limited (RSMML) and one mine each is with Gujarat Industries Power Co. Ltd (GIPCL) and Gujarat Heavy Chemicals Ltd (GHCL). Sector-wise twelve mines are under public sector and the remaining one is under private sector i.e. GHCL.

Captive Coal Mining 1 IISCO steel plant of SAIL is the only public sector steel unit operating captive mines for coal. Bengal Emla Coal Mines Ltd (BECL), Jindal Steel & Power Ltd (JSPL), Hindalco and Tata Steel are the companies, operating captive mines in the private sector.

Captive Coal Mining 2 At present, captive coal blocks are only allotted to companies in power, cement and steel sectors. Till , a total of 201 coal blocks with 47,340.2 million tonnes geological reserves have been allotted in various states.

Captive Lignite Mining Similarly, 30 captive lignite blocks with 2, million tonnes geological reserves have been allocated in Gujarat (12 blocks), Rajasthan (17 blocks) and Tamil Nadu (one block) for power (17 blocks and commercial (13 blocks) till

Captive Coal and Lignite Mining In consultation with CIL and NLC, 47 new coal blocks with geological reserves of about million tonnes and 38 lignite blocks with geological reserves of about million tonnes have been identified.

Location of Coal and Lignite Resources

Characteristics of Indian Coal Deposits LIMITED RESERVES OF COKING COAL HIGH ASH AND LOW CALORIFIC VALUES ( 40% & ABOVE & AVERAGE 4000 K.CAL./KG-UHV) MISMATCH IN LOCATION OF DEPOSITS AND MAJOR CONSUMPTION CENTRES HIGH COST OF TRANSPORT PIT HEAD PRICE – 43% ROYALTY/CESS/SALES TAX –13% TRANSPORTATION – 44%

Beneficiation of Non-Coking Coal Study by Planning Commission concluded that carrying beneficiated coal > 400 km is more attractive. 70% thermal coal moves > 400 km but only 20% of coal is beneficiated at present.

Coking Coal Washeries Presently 19 coal washeries (15 in public sector and 4 in private sector) with million tonnes per annum capacity produced 7.18 million tonnes coking coal in Production of washed coking coal during was 4.26 million tonnes in Public Sector and 2.93 million tonnes in Private Sector.

Non-Coking Coal Washeries 31 coal washeries with million tonnes capacity produced million tonnes non- coking coal during the year. In public sector, 7 non-coking coal washeries were operational, whereas in private sector, 24 non-coking coal washeries were in operation.

Indian Port Sector – Major Ports Major ports are governed by Government of India. 6 ports each on east coast and west coast. Handle about 66% of total seaborne traffic. All ports are ISPS compliant. Capacity as on : million tonnes. Throughput during : million tonnes.

Indian Port Sector – Non-Major Ports Governed by the state governments. No of Ports : 200 – Operational : Ports are ISPS compliant. Handle about 34% of total seaborne traffic. About 75% of Non-Major Port traffic handled by Gujarat State alone.

Indian Port Sector – Non-Major Ports Cargo Mix : POL – 50% Iron Ore – 17% Coal – 14% Fertilizer & FRM – 2% Cement & Clinker – 5% Container – 5% Others – 6%

Major ports – trend in cargo mix

Coal handling in major ports –traffic growth (in million tonnes)

Plans for development of additional coal handling facilities 1 Deepening and widening of entrance channel to facilitate larger size vessels at Paradip, Visakhapatnam, Chennai, Ennore, Tuticorin, New Mangalore. PARADIP – Mechanized Coking Coal / Thermal Coal Handling facilities. VISAKHAPATNAM – Mechanized cargo handling facilities at GCB at Outer Harbour for ship side TPD as well as mechanized loading into wagons at East yard dumps.

Plans for development of additional coal handling facilities 2 ENNORE - Development of a Coal Terminal to handle coal for users other than TNEB. TUTICORIN – Construction of a Coal Berth for NLC TNEB. NEW MANGALORE – Development of coal handling facilities for captive users.

Coal Handling Capacity Demand (in million tonnes)

Coal Movement in India Bulk of coal is transported by rail – 47 % Road transportation – 27 %. Pit-head consumer by dedicated merry-go- round (MGR) rail link – 19 %. Coastal consumers in southern part of India by rail and sea route – 2 % (extra-polated). Limited aerial ropeway and cross country belt conveyors – 5 %

Constraints in Transportation 1 It is estimated that 47.33% amounting to 514 million tonnes of beneficiated coal + superior grade coal is likely to be transported through national rail network / rail-cum-sea network for consumers located beyond coal field areas. The transportation of huge volume of the countries production of about 1061 million tonnes by the end of will be a gigantic task as bulk of the coal has to be transported to power utility and other industries.

Constraints in Transportation 2 In order to enable the vast movement of coal, the Central Electricity Authority has identified through a study by NRSA, 90 potential sites in four states. Of these, 31 are in six districts of Gujarat, 23 in two districts of Maharashtra, 27 in eight districts of Tamil Nadu and 9 in three districts of Andhra Pradesh for development of coastal power projects.

Constraints – Railways 1 The inter state railway network in coal rich States is not adequately linked to the proposed sites / clusters. Railway network along with the wagon supply at port are not properly coordinated for fast movement of cargo.

Constraints – Railways 2 Various on-going projects to expand rail network and other decongestion measures have been thrown forward from one plan to other due to various reasons like shortage of funds, delays in land acquisition, environmental clearance etc. Gestation period of projects of new line is very high therefore, interim measures needed to decongest the traffic in these areas.

Constraints – Roads 1 Condition of major state highways and district roads are worrisome. Fund requirements for this segment have been neglected for long leading to various deficiencies. Relative rate of road length and vehicular traffic indicate a serious imbalanced and have led to congestion of roads and movement of freight traffic is extremely slow.

Constraints – Roads 2 Higher percentage of single lane and poor quality of roads in coastal states has further compounded the problem of congestion at the roads. The system of check posts is a major hindrance in seamless flow of goods for one state to another. Due to above, delays and lower utilization for the rolling stock for which the user industries have to pay heavily.

Coal Vision 2025 by CMPDIL/CIL CMPDIL’s Coal Vision 2025 indicates that the overall annual growth in coal demand till 2025 is expected to be 5.62% with 8% GDP growth scenario, and 5.04% with 7% GDP growth. This means that the demand for coal would increase to 1147 MT (7% GDP growth) and 1267 MT (8% GDP growth) in The total domestic coal production is projected to increase to 1086 MT in 2025, of which the open cast production will be 902 MT (83%).

Coal Vision 2025 by CMPDIL/CIL/MoC Coal Vision 2025 has estimated that 1,70,000 families or 8,50,000 displaced persons would have to be rehabilitated by 2025 when the requirement for land would double from current 1,47,000 hectares to 2,92,500 hectares. The requirement of forest land for mining would also increase more than three-fold from the current 22, 000 hectares (15% of the current total land requirement) to 73,000 hectares (25% of the projected total land requirement) since much of the coal resources to be exploited in future are located in forests.

Coal Demand 8% GDP growth

Two Coal Demand Projections

Coal Demand Supply Gap

XIth Plan Coal Demand Projections

XIth Plan Coal Supply Projections

Coal Import Projections The XIth Plan Working Group on Coal and Lignite coal import projection for is MT. Imports of coal during were about 65.7 MT.

Coal Demand Supply Gap at 142 MT

Foreign Trade – Exports 1 In , exports of coal increased about 2% to 1.66 million tonnes from 1.63 million tonnes in the previous year. Similarly, exports of coke also increased to 1.35 million tonnes in from 0.1 million tonnes in

Foreign Trade – Exports 2 Coal was mainly exported to Bangladesh (78%), Nepal (14%) and Bhutan (7%) and coke to Bahrain (39%), France (31%), Brazil (14%) and Bhutan (7%). Exports of lignite were nominal in Exports of coal gas increased to 21,000 tonnes in from 7,354 tonnes in the previous year.

Foreign Trade – Imports 1 Imports of coal increased by 19% to 59 million tonnes in from 49.8 million tonnes in Imports of coke decreased to 1.88 million tonnes in from 4.25 million tonnes in the previous year.

World steam and coking coal demand and trade ( )

A Warning Bell High quality coal (6000 kcal/kg) import needs could range upto 770 MT by 2031–32. However, currently only about 700–800 MT of coal is being internationally traded!

Decade Ahead for Coal Industry Huge coal demand. Massive investments. Significant technological upgradation. Large scale mining operations. Increased productivity from underground mines. Increase in captive coal mining. Increased coal imports. Shortage of skilled manpower.

Anticipated Investments (in rupees crores)

Future of World Coal Trade Dominance of steam coal in international coal trade expected to continue. International coal trade expected to grow at an average annual rate of only 1.2 %. – Share of coal trade as a percentage of global coal consumption falls to 14 percent in Largest increase in demand from China. Price volatility is likely continue. Increasing “Resource Nationalism” in exporting countries would deter trade.

What Next? Deplete domestic resources, Buy mines / equity in other countries. Long term purchases. Spot purchases.

Coal Demand Projections The current demand projections were made in Fresh figures of coal demand projections, planned production and expected shortfalls that will be met by imports are not forthcoming from Coal India Limited.

Immediate Action Needed Must stop – Indiscriminate capacity addition on coal; especially based on sub-critical technology – Retrofitting of old /smaller/ inefficient units Must shift to more efficient technologies – Super critical – Ultra super critical – IGCC Restrict total coal based generation capacity to 1,50,000 MW ???

The Future Coal use will be self-limiting due to Increasing concerns of Climate Change Difficulty in Land Aquisition Forest Land R & R (Rehabilitation and Resettlement)

Cheap Coal: The World’s Most Expensive Bargain? Coal’s market price reflects various cost elements including mining, production, transportation and retailing costs, government levied taxes and fees, and profit, and the relationship between supply and demand.

Cheap Coal: The World’s Most Expensive Bargain? But this pricing system ignores some of the biggest costs of coal use: the local and global environmental and social impacts accrued by the exploitation, transformation, transportation and utilization of coal. Because the current market price of coal does not reflect the value of ecological and social resources implicit to the exploitation and use of coal, they are, in economic terms, external to the market price.

Cheap Coal: The World’s Most Expensive Bargain? Tragically, such external costs often wind up being “paid” by those communities subject to coal- generated pollution, in the form of degraded natural resources and health problems.

Cheap Coal: The World’s Most Expensive Bargain? Opencast mining requires the exploitation of large tracts of land, and brings with it its own slew of environmental impacts, such as loss of vegetation and tree cover, erosion, dust pollution, depleted forest cover and biodiversity, and pollution of surface water bodies. Such impacts have led to protests in many parts of India.

Cheap Coal: The World’s Bargain ! Coal is the most abundant conventional fossil fuel on the planet and accounts for two thirds of the global fossil fuel resource base. Factor in its relatively low costs, balanced geographical and political distribution, substantial energy density and the world’s insatiable appetite for electricity and it is an ostensibly perfect fuel for a ready-made market.

Credits Power Sector in India, KPMG, “Power at a Glance, Central Electricity Authority, February th Electric Power Survey, Central Electricity Authority, May India Energy Handbook 2011, PSI Inc., August 2010 Indian Mineral Year Book , Indian Bureau of Mines, Nagpur. Partha S. Bhattacharrya, Chairman, Coal India Limited, June Coal Mining in India, Coal India Limited, November A V P N Sarma, Former Secretary, Ministry of Shipping, 2010; G. Srinivasan, Under Secretary, Ministry of Coal, June Tuhin Mukherjee, Essel Mining (an Aditya Birla Group company), February 2011; Coal Vision 2025, CMPDIL. S. K. Chand and R. K. Batra, The Energy and Resources Institute (TERI), November 2009; Coal Vision 2025, CMPDIL; The Future Of Coal, B. Kavalov, S.D. Peteves, DG JRC, Institute for Energy, February 2007 and IEO S. Chaudhuri, CMD, CMPDIL, Dr. Gurdeep Singh, Professor & Head, Dept. of Environmental Science & Engg., Indian School of Mines University, Dhanbad – Mining Engineers’ Journal, June 2008; Coal Vision 2025, CMPDIL,2007. K.K. Sharma, Executive Director(CM and CW), NTPC, August Coming Clean, The Truth and Future of Coal in Asia Pacific, World Wildlife Fund, 2007.